84) Six Sigma quality control
A) is a strategy-implementer’s best, most reliable tool for simultaneously achieving top-notch
product quality and low manufacturing costs.
B) consists of a disciplined, statistics-based system aimed at producing not more than 2.5 defects
per million iterations for a manufacturing or assembly process.
C) consists of a disciplined, statistics-based system aimed at producing not more than 3.4 defects
per million iterations for any business process.
D) consists of a disciplined, statistics-based system aimed at fewer than 5.0 complaints per
million customer transactions.
E) is a powerful tool for companies whose customers are very picky about product quality and
product performance and who can’t afford for the product they use to break down and require
repairs.
85) Company strategies and value creating processes can’t be effectively executed without
internal information systems that include
A) customer data, employee data, supplier/partner data, operations data, and financial
performance data.
B) TQM, reengineering, and Six Sigma programs.
C) monetary and nonmonetary reward systems.
D) activity-based cost accounting, benchmarking, and best practices.
E) continuous access to social networks.
86) Essential state-of-the-art operating and information systems that support company strategies
and value-creating internal processes are NOT concerned with
A) customer database systems.
B) information systems to track supplier/partner/collaborative ally data.
C) human resources systems that maintain employee data.
D) systems to record and report financial performance data.
E) data management systems for undertaking benchmarking, TQM, and Six Sigma quality
control.
87) An important consideration in designing a strategy-supportive motivation and reward system
is to
A) link the payment of all monetary rewards to the company’s profitability.
B) employ incentives that will help motivate employees to work hard at performing their
assigned duties and activities.
C) choose those types of rewards and incentives that focus employees’ attention on “what to do.”
D) make across-the-board wage and salary increases the cornerstone of monetary rewards.
E) make both monetary and nonmonetary rewards integral parts of the reward system.
88) The guidelines for designing an incentive compensation system that will help drive
successful strategy execution include
A) making the payoff for meeting or beating performance targets a major, not minor, piece of the
total compensation package.
B) having a bonus and incentive plan that applies to managers only (employees should generally
not be included in incentive pay plans but should have attractive wages and salaries).
C) having an outside wage and salary expert administer the system, so that there is no doubt as to
its fairness and impartiality.
D) basing the incentives on group performance rather than individual performance.
E) making minimal use of nonmonetary incentives and rewarding people for diligently
performing their assigned duties.
89) Kaitlin is manager of the county library and is considering developing and implementing a
reward and incentive system that helps promote good strategy execution. What should she
AVOID doing in her strategy implementation effort?
A) The reward system must be administered with scrupulous objectivity and fairness.
B) The payoff for meeting or beating performance targets must be a major, not minor, piece of
the total compensation package.
C) Any incentive plan should extend to all managers and all employees, not just top
management.
D) Ways must be found to reward deserving nonperformers who, for some reason, do not fare
well under the incentive system.
E) Make sure that the performance targets each individual or team is expected to achieve involve
outcomes that the individual or team can personally affect.
90) If you were developing an incentive system designed to help drive successful strategy
execution, which compensation and reward system would you NOT consider in your strategy
execution effort?
A) tying incentives to performance outcomes directly linked to good strategy execution and
financial performance
B) keeping the time between achieving the target performance outcome and the payment of the
reward as short as possible
C) making sure the performance targets that each individual or team is expected to achieve
involve outcomes that the individual or team can personally affect
D) generous rewards for people who turn in outstanding performances
E) a reward system that involves 50 percent nonmonetary rewards and a work environment that
avoids placing pressure on managers and employees to perform at high levels
91) Illustrate how companies have used strategic priorities to drive how capital allocations are
made in the pursuit of good strategy execution.
92) Imagine you are CEO of a local hospital. Which policies and procedures would you develop
and deploy in order to facilitate superior strategy execution?
93) Benchmarking is defined as the process of identifying, studying, and implementing best
practices in executing strategy. Suppose you are managing a local landscaping company. How
would you justify the use of benchmarking for your business?
94) You are the owner and CEO of a manufacturer of camping and outdoor adventure
equipment. What might be the payoff of implementing total quality management (TQM) in your
business?
95) How do Six Sigma quality control programs benefit the Charleston Area Medical Center, and
what are two types of programs that they include?
96) Is there a difference between Six Sigma DMAIC programs and Six Sigma DMADV
programs? If so, what are those differences?
97) What three principles underlie the statistical thinking of Six Sigma quality control programs?
98) Explain how the Six Sigma process of define, measure, analyze, improve, and control
(DMAIC) works. Provide at least two examples of companies that have adopted Six Sigma.
99) While Six Sigma programs often improve the efficiency of many operating activities and
processes, there is evidence that innovation can be stifled by Six Sigma programs. True or false?
Explain.
100) Natalie and Vinnie own the Russian River Brewing Company, a craft brewer and taproom
in Northern California. What actions could the partners take to realize full value from TQM or
Six Sigma initiatives and promote a culture of operating excellence?